Pag-IBIG disburses P11.67B in multi-purpose loans in Q1

State-run Home Development Mutual Fund (Pag-IBIG Fund) posted a record high in terms of multi-purpose loans (MPL) or cash loans disbursed in the first three months of the year.

In an emailed statement, Pag-IBIG said it released P11.67 billion in MPLs in the first quarter, translating to a 7% increase from the P10.92 billion the same period last year.

The amount covers a total of 571,681 members, also the highest for any January-March period on record.

"While Pag-IBIG is known for our housing loan programs, our multi-purpose loan program serves as an affordable and readily-accessible source of cash loans," said Pag-IBIG Fund CEO Acmad Rizaldy Moti.

"The MPL proceeds can be used for tuition fees, medical expenses, minor home improvement, capital for business, or even for vacation expenses," he added.

The MPL program allows qualified members to borrow up to 80% of their total Pag-IBIG Regular Savings, which consists of their monthly contributions, their employer's contributions, and accumulated dividends earned.

The loans are payable within 24 months, and comes with a deferred first payment, and an interest rate of 10.5% per annum.

"We understand that our members borrow through MPL because of an immediate need, so we made sure that we will be able to process their loan applications promptly. With the stabilization of our upgraded system last year, members are now able to receive their loan proceeds in an average of 1.7 working days," said Moti.

"This faster processing time allowed us to serve more members, which is reflected in the 11% growth in the number of loan releases or an additional 57,865 members we have served from January to March this year against same period in 2018," he added.

In total, the Pag-IBIG Fund said it released P12.05 billion in short term loans in the first quarter of the year, covering 593,269 members.

This includes the amount disbursed through the MPL Program, as well as the P384.03 in Calamity Loans released to 21,588 members.—LDF, GMA News